Chapter 3

Question 1

The marketing environment

Answer 1

actors and forces outside marketing that
affect marketing management’s ability to
build and maintain successful relationships
with target customers

Question 2

Microenvironment consists of the actors
close to the company that affect its ability
to serve its customers

Answer 2

the company,
suppliers, marketing intermediaries,
customer markets, competitors and
publics

Question 3

Micro

The company
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting

Answer 3

Competitors : Firms must gain strategic advantage by
positioning their offerings against
competitors’ offerings

Publics
• Any group that has an actual or potential interest in
or impact on an organisation’s ability to achieve its
objectives
– Financial publics
– Media publics
– Government publics
– Citizen-action publics
– Local publics
– General public
– Internal publics

Question 4

micro

Supplier
 (• Provide the resources to produce goods
and services.
• Treat as partners to provide customer
value)

Customer
• Consumer markets
• Business markets
• Government markets
• International markets

Answer 4

Marketing intermediaries : Help the company to promote, sell and distribute its products to final buyers

Resellers, Physical distribution firms,
Marketing services agencies, Financial intermediaries

Question 5

Demographic environment
Demography: the study of human populations
• Demographic environment: involves people,
and people make up markets.
• Demographic trends: shifts in age, family
structure, geographic population,and population diversity

Answer 5

`Economic environment consists of factors
that affect consumer purchasing power and
spending patterns.
• Industrial economies are richer markets.
• Subsistence economies consume most of
their own agriculture and industrial output

Question 6

Universe
X
% potential customers/buyers
X
% market penetration
X
Frequency
X
Quantity
X
Price/unit
=
Market size

Answer 6

demand = numbers x quantity x price